BUILDING LOCAL GOVERNMENT CAPACITY FOR PARTNERSHIP IN DEVELOPMENT

1. BUILDING LOCAL GOVERNMENT CAPACITY FOR PARTNERSHIP IN DEVELOPMENT Luke Danielson Cecilia Dalupan Sustainable Development Strategies Group SDSG Monitoring the Impact of Community Development Programs Linked to Extractive Industry (EI), World Bank, 05 December 2006

2. Fundamental Principles and Issues • THE PERSON IN THE POSITION TO DIRECT THE INCOME STREAM CAN DEMAND VERY SUBSTANTIAL COMPENSATION • IN OTHER CULTURES WE RARELY SEE ALL OF WHAT IS GOING ON • KEY ISSUES: DETERMINATION OF BENEFICIARY - “AFFECTED COMMUNITIES” – Who? How? SDSG

3. HOW MUCH TRUTH TO THESE PERCEPTIONS? ØTHERE ARE TOO FEW PEOPLE SHARING IN THE BENEFITS ØIN PART BECAUSE A SMALL NUMBER OF PEOPLE CONTROL ACCESS TO THE BENEFITS; AND ØTHEY USE THAT CONTROL IN WAYS THAT ARE SEEN AS UNFAIR. SDSG

4. EQUITY AS A METRIC? • A NECESSARY COMPONENT OF SUSTAINABLE FORMS OF DEVELOPMENT • BUT IN VERY POOR COMMUNITIES, IF ONLY SOME DO VERY WELL BUT THE MAJORITY RECEIVES VERY LITTLE, THERE IS LIKELY TO BE CONFLICT • INCREASED INEQUALITY AND CONFLICT ARE OFTEN UNAVOIDABLE BYPRODUCTS OF DEVELOPMENT SDSG

5. NECESSARY CONDITIONS FOR EFFECTIVE MANAGEMENT OF BENEFITS: ØCAPABLE LOCAL GOVERNMENT ØAN ACCEPTED MEANS FOR SHARING REVENUES • THERE ARE STILL PROJECTS WHERE NONE OF THE REVENUE REACHES THE LOCAL LEVEL, AND COMPANIES, WITHOUT AN EFFECTIVE LOCAL GOVERNMENT PARTNER, TRY TO BEAR THE WHOLE BURDEN. • THIS SIMPLY DOESN’T WORK. SDSG

6. Designing Sustainable Community Development Interventions ØBENEFITS REACH THE COMMUNITY THROUGH MANY DIVERSE CHANNELS, NOT A SINGLE SPIGOT; ØMODEST BENEFITS REACH LARGE NUMBERS, IN PREFERENCE TO LARGE BENEFITS TO MODEST NUMBERS; ØNATIONAL GOVERNMENT RECOGNITION OF THE NECESSITY THAT REVENUES REACH LOCAL GOVERNMENT; AND ØCONCENTRATED EFFORT TO BUILD CAPACITY OF LOCAL GOVERNMENT SDSG